The heart of Kailua-Kona is set to experience a major revival with the reopening of one of its most iconic properties. The former Uncle Billy’s Kona Bay Hotel is undergoing an extensive $30 million transformation, emerging as the Hampton Inn Kailua-Kona Bay in the summer of 2025. This ambitious renovation project, spearheaded by 12th & A Hotel Partners and preservationist Sandy Shapery, seeks to blend the property’s historic Hawaiian charm with the modern comforts expected by today’s travelers.
With the region’s tourism industry continuing to grow, the reopening of this landmark hotel comes at a pivotal time. Designed to capture the spirit of old Hawai‘i while meeting contemporary hospitality standards, the project reflects a broader trend in the hospitality sector: the fusion of authentic cultural experiences with high-quality amenities.
A Vision Rooted in Preservation and Modern Hospitality
The transformation of the former Uncle Billy’s Kona Bay Hotel into the Hampton Inn Kailua-Kona Bay is more than just a renovation—it’s a reimagining of what Hawaiian hospitality can be in the 21st century. Shapery, a known advocate for historic preservation, has been instrumental in ensuring that the hotel’s redesign maintains its original essence.
The hotel’s semi-circular, four-story structure remains a prominent feature, but nearly every element within its walls is being updated. From new furniture and fixtures to modern architectural enhancements, the property is evolving while staying true to its roots. Even the wooden boardwalk, a signature element of the original design, is being reconstructed with a durable composite material that mimics traditional wood while enhancing longevity.
The renovation also includes eco-friendly upgrades, reflecting a growing commitment within the hospitality industry to sustainability. A striking feature of the revamped property will be the installation of 340 environmentally friendly tiki torches. These torches, traditionally fueled by kerosene, will now utilize LED flicker lights, reducing the environmental impact without sacrificing the ambiance that defines Hawaiian evenings.
A $30 Million Investment in Kailua-Kona’s Tourism Future
The $30 million transformation of the property represents a significant investment not just in the hotel itself but in Kailua-Kona’s tourism-driven economy. The project, financed by Summit Capital and managed by PEG Hospitality Group, has been in development since 2020. According to John Stueber of Summit Capital, the goal has been to create a hotel that honors the historic significance of the site while offering a guest experience that meets modern expectations.
“Our longstanding relationships in hospitality development allowed us to bring together the partnerships and funding necessary to make this project a reality,” Stueber noted. “This isn’t just about renovating a building—it’s about contributing to the growth and sustainability of Kailua-Kona’s economy.”
The hotel’s reopening is expected to generate numerous local jobs, both during the construction phase and once operational. It also aims to attract a diverse range of travelers, from business professionals to leisure tourists, all drawn to the blend of Hawaiian culture and contemporary amenities.
Blending Tradition with Modern Comforts
The Hampton Inn Kailua-Kona Bay will offer 123 rooms, designed to appeal to both business and leisure travelers seeking an authentic Hawaiian hospitality experience. Guests will enjoy a range of amenities, including spacious, modern rooms, a state-of-the-art fitness center, and a sparkling outdoor pool. The hotel will also feature a large outdoor common area with a firepit and bar, providing a perfect setting for social gatherings against the backdrop of Kailua-Kona’s scenic beauty.
Cultural enrichment is a key focus of the new hotel. A pavilion area will host local entertainment and cultural activities, allowing guests to engage with the traditions and stories of Hawai‘i. This emphasis on cultural authenticity aligns with a growing trend in tourism, where travelers seek meaningful, immersive experiences that go beyond typical resort offerings.
Adding to the hotel’s appeal is the return of Trader Vic’s Island Bar and Grill, an establishment steeped in Polynesian culinary history. Known for inventing the iconic Mai Tai in 1944, Trader Vic’s will offer a menu that highlights Island and Polynesian cuisine, complemented by its legendary cocktails.
Community Support and Cultural Significance
The transformation of the hotel has been met with strong support from local leaders and community members. A traditional Hawaiian blessing ceremony, held on December 10, 2024, underscored the project’s cultural significance. Led by Kahu Danny and Anna Akaka, the ceremony was a sacred gathering that honored the land and sought blessings for the property’s future.
Newly sworn-in Mayor Kimo Alameda praised the project’s contribution to both the local economy and cultural preservation. “The investment in the local community enhances the visitor experience by providing more accessible, quality accommodations,” Alameda stated. “We are grateful to Sandy and his team for their dedication to preserving the essence of our community while fostering economic growth.”
This sentiment reflects a broader recognition of the hotel’s role in sustaining Kailua-Kona’s cultural identity. By respecting the site’s history while adapting it for modern travelers, the project serves as a model for responsible tourism development in Hawai‘i.
Architectural Excellence and Design Innovation
The architectural redesign of the Hampton Inn Kailua-Kona Bay is a collaborative effort between AM Turner Architects and Koa Design Group, with construction managed by Honolulu Builders and interiors crafted by Level 3. The design seamlessly blends modern elements with traditional Hawaiian aesthetics, creating a space that feels both contemporary and timeless.
Innovations include the integration of sustainable building materials, energy-efficient lighting systems, and enhanced accessibility features. The addition of a second elevator, for example, ensures compliance with Hilton’s high standards for guest convenience and safety.
A New Chapter for an Iconic Destination
Located at 75-5747 Ali’i Drive, the Hampton Inn Kailua-Kona Bay is poised to become a cornerstone of Kailua-Kona’s vibrant hospitality scene. Its reopening marks not just the revival of a beloved landmark but the start of a new chapter that honors the past while embracing the future.
As travelers seek destinations that offer both cultural authenticity and modern comfort, the Hampton Inn Kailua-Kona Bay stands as a testament to the enduring appeal of Hawai‘i’s natural beauty and rich heritage. This Kona hotel transformation is more than just a facelift—it’s a celebration of history, community, and the timeless spirit of aloha.
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